Introduction
With surging rental demand across Dubai, rent increases are a frequent source of dispute. UAE law sets strict limits to protect tenants while ensuring fair returns for landlords.
Decree No. 43 of 2013: The Rent Cap Framework
Allowable rent increases are determined strictly by how much the existing rent sits below average market rents in the RERA Rental Calculator:
- 11% to 20% below market: Maximum 5% increase.
- 21% to 30% below market: Maximum 10% increase.
- 31% to 40% below market: Maximum 15% increase.
- More than 40% below market: Maximum 20% increase.
The Mandatory 90-Day Notice Period
Under Article 14 of Law No. 33 of 2008, any proposed amendment to rental terms or rates must be communicated in writing at least 90 days prior to contract expiry. Failure to meet this deadline invalidates the increase.
The DLD Property Valuation Certificate
Landlords can apply for an official DLD Rent Valuation Certificate. While landlords argue this certificate overrides the online RERA calculator, RDSC jurisprudence requires consistent interpretation.